ACTION PLAN ON NATIONAL AGRICOMMODITY POLICY

Action Plan 47

T2. PRODUCTIVITY

Expand productivity improvement
efforts across upstream and
downstream segments

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S5. ▶ Implement ▶ Cost reduced KTK, MPC 3. Labour 3. Labour
Improve Total Quality after application Intensity – Intensity –
efficiency of Management of GMP, 5S, Lean Land : Labour Land : Labour
the timber (TQM) at all manufacturing, ratio (ha : ratio (ha :
industry by levels of value etc. worker): 4 : 1 worker): 4 : 1
using modern chain
technology ▶ Labour 4. Labour 4. Labour
(GMP, 5S, lean ▶ Promote Good productivity of productivity: productivity:
management, Manufacturing RM83,000 (i.e., RM83,000 RM100,000
R&D&C, smart Practises value added per (i.e., value (i.e., value
manufacturing) (GMP, 5S, Lean unit labour) added per added per
manufacturing unit labour) unit labour)
S6. etc.)
Promote take 5. Transfer/ 5. Transfer/
up of IR4.0, ▶ Programme: licensing and licensing and
automation and Design and commerciali- commerciali-
mechanisation Branding sation rate of sation rate of
among industry Intensif ication R&D projects: R&D projects:
players in moving 13% 15%
from Original
Equipment 6. Value of 6. Value of
Manufacturer foreign foreign
(OEM) into and local and local
Original Design investment: investment:
Manufacturer RM1,600 RM1,850
(ODM) and million million
Original Brand
Manufacturer
(OBM)

▶ Implement ▶ Labour MTIB, SIRIM,
transfer of productivity of MOSTI/
technology RM83,000 (i.e., MIMOS/
programme and value added per MYSA
establish local unit labour)
technologies
and R&D
capabilities
through
continuous
learning and
innovation

48 National Agricommodity Policy 2021-2030 (DAKN2030)

T3. VALUE-CREATION

Accelerate the shift to higher
value-added activities

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S7. ▶ Flagship ▶ 65% of MTIB, MRM, 7. Contribution 7. Contribution
Programme companies MTC to GDP: RM to GDP: RM
Elevate the 6: Furniture classified ODM 19,615 Million 27,044 Million
industry’s Original Design and OBM
initiatives and Branding: ▶ Upstream ▶ Upstream
towards ODM, ▶ 2 companies
OBM, and – TANGGAM per year in GDP: RM3,823 GDP: RM3,164
production Design TANGGAM
of ‘Made in Programme Programme Million Million
Malaysia’ timber
products – Furniture ▶ Downstream ▶ Downstream
Design GDP : GDP :
S8. Competitions - RM15,792 RM23,881
MOBILI Million Million
Expand design
capability and – Professional 8. Utilisation 8. Utilisation
innovation for Designers rate (Ratio of rate (Ratio of
the Malaysian Programme Production Production
timber industry : Domestic : Domestic
through transfer – Design Utilisation): Utilisation):
of technology Incubator 1 : 0.75 1 : 0.8
and branding, Programme
including in 9. Percentage 9. Percentage
collaboration of companies of companies
with universities classif ied classif ied
and TVET ODM and ODM and
institutions OBM: 65% OBM: 70%

10. Ratio of 10. Ratio of
Exports Exports
Upstream : Upstream :
Downstream: Downstream:
32 : 68 30 : 70

Action Plan 49

T4. MARKET DEVELOPMENT

Enhance certification practices and
industry-led strategic partnerships

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
S9.
Encourage ▶ Engage and ▶ 40 Forest MTCC/MTIB 11. Total Export: 11. Total Exports:
and promote encourage Management RM28,000 RM32,800
greater uptake domestic timber Unit (FMU) KTK/MTCC/ million million
of certification producers to MTC/MTIB
(legal and label and brand ▶ 600 Chain of ▶ Exports ▶ Exports
sustainable) their products Custody (CoC) Upstream: Upstream:
for the timber for sale both RM9,000 RM9,800
industry domestically million million
and
S10. internationally ▶ Exports ▶ Exports
Foster Downstream: Downstream:
foreign-local ▶ Engage Federal RM19,000 RM23,000
collaboration and State million million
in commercial- Governments,
isation for f inancial 12. Balance 12. Balance
international institutions, of Trade: of Trade:
markets private RM20,070 RM22,850
corporations million million
and specifiers
to specify the 13. Value of 13. Value of
use of MTCS Domestic Domestic
-certif ied Consumption: Consumption:
products RM20,000 RM24,500
under their million million
sustainability
and CSR
programmes

▶ Ensure MTCC
continued MTCC
endorsement
of the MTCS by
PEFC

▶ Engage and
collaborate with
regional and
international
bodies for
continued
acceptance and
recognition of
the MTCS

▶ Collaboration ▶ 1 collaboration MTIB/MTC
with local and programme
international established
designers and
industry players
for design and
R&D&C

50 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
S11. ▶ 1 collaboration KTK, MTIB,
Promote greater ▶ Collaborate programme Standard
consumption of to promote established Malaysia
sustainable local sustainable ▶ 1 collaboration
timber products local timber programme MTIB,
product with established MATRADE,
S12. industry players, ▶ 1 technical
Develop stakeholders, mission carried MTC
Malaysian firms and foreign out per year
to become Embassy/High KTK, MTIB,
globally Commission in ▶ 1 trade mission STIDC,
competitive Malaysia carried out per
timber and year Sarawak
timber-based ▶ Collaborate Forestry
companies with Malaysian ▶ 80 exhibitions Department
Government- organised per and Sabah
linked year, with 100 Forestry
Companies companies Department
(GLCs) to supply participating
timber for KTK, MTIB,
construction MTC,
projects
overseas MATRADE,
STIDC
▶ Technical
missions to MTIB, MTC
promote
Malaysian MTIB
Timber Legality
Assurance MTIB
System
(MYTLAS)
Peninsular
Malaysia/Sabah
Timber Legality
Assurance
System (Sabah
TLAS)/Sarawak
Timber Legality
Verif ication
System (STLVS)

▶ Conduct Trade
Missions for
traditional, new
and emerging
markets

▶ Participate
in local and
international
exhibitions each
year

▶ Train local
designers in
contemporary
and commercial
designs

▶ Enhance
activities under
TANGGAM

Action Plan 51

T5. INCLUSIVENESS

Increase participation of
Bumiputera in the Timber industry

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
S13.
Empower ▶ Implement ▶ 500 Bumiputera MTIB 14. Number of 14. Number of
Bumiputera Raw Materials entrepreneurs in Bumiputera Bumiputera
participation Support timber industry entrepre- entrepre-
in the timber Programme neurs: 500 neurs: 600
industry ▶ 20 new
through smart- ▶ Enhance Bumiputera 15. Contribution 15. Contribution
partnership Production entrepreneurs of of
activities Capacity at established per Agricommo- Agricommo-
Micro, Small- year dity-based dity-based
S14. Medium MSMEs to MSMEs to
Raise workers’ Enterprises ▶ 20 skilled Agricommo- Agricommo-
welfare (MSME) Bumiputera dity -based dity -based
Bumiputera wood carving output (RM) output (RM)
Timber Factory craftsmen 85 Million 100 Million
Programme trained per year

▶ Encourage 16. Percentage of 16. Percentage of
participation Bumiputera Bumiputera
in trade fairs & MSMEs in MSMEs in
local promotion Midstream & Midstream &
programmes Downstream Downstream
segments segments
▶ Implement – especially – especially
Pelan Strategik “Next Gen” “Next Gen”
Pembangunan Bumiputera Bumiputera
Industri Ukiran Entrepre- 71%
Kayu (2021- neurs: 59.2%
2030)
▶ 2 companies KTK/MTIB
▶ Promote Good per year
Manufacturing adopting lean
Practices manufacturing
(GMP, 5S, lean approach
manufacturing,
etc.)

52 National Agricommodity Policy 2021-2030 (DAKN2030)

TIMBER
ENABLERS

Enabler 1. Investment Facilitation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 KTK/MTIB
▶ Facilitate investments
by providing loans, ▶ Implement MTIB levy ▶ RM 3 million per project KTK/MTIB
grants and incentives fund (TPIKM) allocated to enhance
to assist firms, and R&D&C&I in timber MTC/MITI (MIDA)/MIDF
improving investment ▶ Implement sector
climate Forest Plantation
Development ▶ RM 500 million
Programme 2.0 allocated as loan for
50,000 ha of forest
▶ Introduce investment plantations
improvement
programmes ▶ New investments in the
timber industry

Enabler 2. Improving Market Access

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 KTK, MTIB, MTC &
▶ Pursue partnerships 2 implementation
with the private sector ▶ Promote Malaysia’s ▶ 1 promotional visit
in joint effort for legality system in other per year to major agencies (JPSM & DOSH/
sustained promotion of markets (ensure that markets to promote JKDM)
MTCS, MYTLAS/Sabah Malaysian legality has the Malaysian legal and
TLAS/STLVS and other been audited) sustainable timber MTC, MTIB
certif ications
▶ Develop one portal ▶ 1 timber portal MTIB
▶ Share information for timber market established
and updates about information and access MTIB
developments in ▶ 80 exhibitions
consumer and lifestyle ▶ Participate annually in organised per year,
markets local and international with 100 companies
exhibitions participating

▶ Conduct seminars/ ▶ 1 seminar/roadshow
roadshows to organised per year
disseminate
information on
requirements and
legality; promote timber
usage in government
procurement and
construction projects;
Green Building Index
(GBI)

Action Plan 53

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MITB
▶ Continue to foster
linkages between ▶ Participate in local ▶ 80 exhibitions MTIB, MTC
producers and traders, and international organised per year,
and participation in exhibitions with 100 companies
lifestyle, marketing and participating
trade shows ▶ Conduct seminars/
roadshows to ▶ 1 seminar/roadshow
disseminate organised per year
information on
requirements and
legality; promote timber
usage in government
procurement and
construction projects;
Green Building Index
(GBI)

Enabler 3. Mechanisation and Automation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MTIB/MPC/MIDF
▶ Foster strategic
partnerships between ▶ Provide incentives to ▶ Labour productivity to
industry, government assist the industry to reach RM83,000 (i.e.,
agencies and research invest in technologies value added per unit
institutions to develop to improve productivity labour)
commercially viable and reduce labour
solutions and provide inputs
information to the
industry

Enabler 3. Human Capital Management and
Development

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MTIB, KSM, MOE, JPK
▶ Strengthen
collaboration between ▶ Increase training ▶ Platform for job
industry, agencies and courses for local matching in the timber
training institutions to workers industry established,
develop skills and talent with 50 workers per
▶ Establish a job year matched through
matching programme job matching platform

▶ Mandatory certification ▶ Mandatory requirement
programme for implemented for
certified skilled certified skilled workers,
worker developed and with 50 workers per
implemented year certified

54 National Agricommodity Policy 2021-2030 (DAKN2030)

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MTIB, KSM, MOE, JPK
▶ Implement a
scholarship programme ▶ Develop competency ▶ Training programme MTIB, JPK
to support and train modules based on (TVET) using NOSS
talented Malaysians in National Occupational established
international schools Skills Standards (NOSS)
and institutions in timber technology ▶ 100 trainers upskilled
per year
▶ Conduct a study on
timber sector workforce ▶ 2 modules improved

▶ Collaborate with ▶ 2 studies carried out on
vocational colleges to timber sector workforce
improve syllabus
▶ 1 collaboration per year
▶ Implement training with vocational colleges
programmes in
collaboration with City ▶ Minimum of 2 training
& Guilds London programme per
year carried out in
▶ Rebrand the image partnership with City &
of timber industry to Guilds
locals

Action Plan 55

56 National Agricommodity Policy 2021-2030 (DAKN2030)

COCOA
Driving The
Development Of The
Cocoa Industry

58 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

15 13

Indicators Strategies
& Targets

1 2 3 5

SUSTAINABILITY PRODUCTIVITY VALUE-CREATION INCLUSIVENESS
Secure consistent Increase smallholder Focus on niche cocoa Increase smallholder
supply of certified, beans and expand the
traceable cocoa beans productivity and incomes while
S1. Establish strategic application of R&D and downstream developing
partnerships to expand segment
domestic production of digital technologies entrepreneurs
certified and traceable S4. Expand extension S8. Focus on niche, high S13. Advance
cocoa beans through quality specialty beans
cluster farming, programmes to coach towards production of income-generation
cooperatives, crop and build capacity of organic and fine or opportunities for
integration and smallholders flavour cocoa (FFC) smallholders and
plantation S5. Strengthen plantation entrepreneurs/ MSMEs,
development management practices S9. Develop downstream e.g., chocolate
S2. Set up a traceability by upskilling and industries through entrepreneur,
system to track quality certifying manpower strategic partnerships integrated cocoa and
and origins of cocoa S6. Set the standard for to widen the range of agro-tourism clusters,
beans quality, productivity cocoa-based products, nurseries by adopting
S3. Secure consistent and sustainability including non-food the “Farm to Table”
imports of certified through R&D and products model
sustainable cocoa technical standards
beans to meet S7. Enhance technology 4
downstream industry development and
needs adoption, e.g., IoT, IR MARKET DEVELOPMENT
4.0, data analytics, Position Malaysia as a
digital marketing and regional hub and
e-commerce increase exports
to developing markets

S10. Position Malaysia as a

3regional cocoa hub by

attracting global cocoa
and chocolate players
to make Malaysia their
regional hub
S11. Brand and promote
Malaysian cocoa and
cocoa products locally
and internationally
S12. Develop new markets
for Malaysian cocoa
products by enhancing
trade with other
countries

Action Plan 59

T1. SUSTAINABILITY

Secure consistent supply of
certified, traceable cocoa beans

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S1. ▶ Strengthening ▶ Farmer’s MCB 1. Compliance 1. Compliance
and Sustaining revenue with MS with MS
Establish the Cocoa increased by MOSTI/ 2672:2017 2672:2017
strategic Cluster Chain 20% MIMOS/ on Dry on Dry
partnerships Programme Cocoa Beans Cocoa Beans
to expand MYSA Standards: Standards:
domestic ▶ Cocoa 100% 100%
production of Production
certified and Stimulus 2. Traceability 2. Traceability
traceable cocoa Programme of locally of locally
beans through produced produced
cluster farming, ▶ Programme: cocoa beans: cocoa beans:
cooperatives, Integrated 40% 40%
crop integration Cocoa
and plantation Cooperatives ▶ Farmers receive
development premium prices
▶ Engagement for traceable
S2. programmes cocoa produced
with traders, – higher by 20 -
Set up a importers and 30%
traceability grinders to give
system to track awareness on MCB
quality and the importance
origins of cocoa and value of
beans importing
certif ied
S3. sustainable
cocoa beans
Secure
consistent
imports of
certif ied
sustainable
cocoa beans
to meet
downstream
industry needs

60 National Agricommodity Policy 2021-2030 (DAKN2030)

T2. PRODUCTIVITY

Increase smallholder productivity
and application of R&D and digital
technologies

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
▶ Percentage of MCB
S4. ▶ Strengthening technologies MCB 3. Total 3. Total
Expand and Sustaining disseminated Production: Production:
extension the Cocoa to stakeholders: MCB 3,180 tonnes 4,250 tonnes
programmes Cluster Chain 100%
to coach and Programme MCB/MOSTI 4. Yield: 0.5 4. Yield: 0.56
build capacity of ▶ 500 certified Tonnes/Ha Tonnes/Ha
smallholders ▶ Plantation workers/farmers,
S5. Sector supervisors, 5. Labour 5. Labour
Strengthen Promotion executives Intensity Intensity
plantation Programme and extension (Land:Labour (Land:Labour
management agents ratio): 4 : 1 ratio): 4 : 1
practices by ▶ Smart Farming
upskilling Towards ▶ 200 - 500 6. Transfer/ 6. Transfer/
and certifying Digital Cocoa certif ied licensing and licensing and
manpower Management farmers produce commerciali- commerciali-
S6. premium cocoa sation rate of sation rate of
Set the standard ▶ Cocoa beans R&D projects: R&D projects:
for quality, Agribiotechno- 13% 15%
productivity and logy Innovation ▶ 75% of cocoa
sustainability Programme seedlings
through R&D verified in cocoa
and technical ▶ Cocoa of nurseries in
standards Excellence Malaysia
Programme:
S7. Premium ▶ 5 new
Enhance Malaysian Cocoa entrepreneurs
technology Beans via smart
development partnerships in
and adoption, ▶ Cocoa-based commercialisa-
e.g., IoT, IR Product tion of products
4.0, data Development
analytics, digital Programme ▶ 30 - 40%
marketing and reduction
e-commerce ▶ Commercialisa- in cost of
tion of agricultural
Innovation and inputs
Intellectual application and
Property management

Action Plan 61

T3. VALUE-CREATION

Focus on niche cocoa beans and expand
the downstream segment

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
▶ 300 tonnes MCB
S8. ▶ Strengthening or ▶% of total 7. Sectoral GDP 7. Sectoral GDP
Focus on niche, and Sustaining domestic cocoa MCB Contribution Contribution
high quality the Cocoa production is (RM 2,582 (RM 4,149
specialty Cluster Chain specialty beans million) million)
beans towards Programme ▶ 1,000 ha of
production of planted area (re) ▶ Upstream ▶ Upstream
organic and fine ▶ Cocoa planted with GDP (RM 55 GDP (RM 158
or flavour cocoa Production specialty beans million) million)
(FFC) Stimulus
Programme ▶ 10 new products ▶ Downstream ▶ Downstream
S9. developed/ GDP (RM GDP (RM
Develop ▶ Programme: commercialised 2,528 million) 3,991 million)
downstream Increasing Value and produced
industries Through Fine or in Malaysia 8. Utilisation 8. Utilisation
through Flavour Cocoa (includes food rate (Ratio of rate (Ratio of
strategic (FFC) & non-food Production: Production:
partnerships products) Domestic Domestic
to widen the ▶ Cocoa-based Utilisation): 1 : Utilisation): 1 :
range of cocoa- Product 1 1
based products, Development
including non- Programme
food products
▶ Commercialisa-
tion of
Innovation and
Intellectual
Property

62 National Agricommodity Policy 2021-2030 (DAKN2030)

T4. MARKET DEVELOPMENT

Position Malaysia as a regional hub and
increase exports to developing markets

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
MCB
S10. ▶ Chocolate ▶ 2 new market 9. Total Exports: 9. Total Exports:
Entrepreneur destinations MCB RM10,000 RM15,000
Position Development annually (from million million
Malaysia as and Cocoa 113 countries MCB
a regional Promotion in 2020 to 123 10. Ratio of 10. Ratio of
cocoa hub Programme countries in Upstream to Upstream to
by attracting 2025) Downstream Downstream
global cocoa ▶ Flagship Exports: 10 : Exports: 9 : 91
and chocolate Programme 7: ▶ Increase market 90
players to make Cocoa Trading share of cocoa 11. Balance
Malaysia their Hub and and cocoa 11. Balance of Trade:
regional hub Cocoa Nexus@ products in of Trade: RM8,800
Iskandar the following RM4,300 million
S11. regions: million

Brand and – Asia and
promote Oceania (5.5%
Malaysian annual increase)
cocoa and
cocoa products – Middle East (12%
locally and annual increase)
internationally
– Africa (11.4%
S12. annual increase)

Develop new – Eastern Europe
markets for (13.3% annual
Malaysian increase)
cocoa products
by enhancing
trade with other
countries

Action Plan 63

T5. INCLUSIVENESS

Increase smallholder incomes while
developing entrepreneurs

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S13. ▶ Strengthening ▶ 20% increase MCB 12. Smallholders 12. Smallholders
and Sustaining in revenue of Income (RM) Income (RM)
Advance the Cocoa farmers - Average - Average
income- Cluster Chain income per income per
generation Programme ▶ 30% annual month per month per
opportunities increase in smallholding: smallholding:
for smallholders ▶ Cocoa revenue of
and Production chocolate ▶ Net income ▶ Net income
entrepreneurs/ Stimulus entrepreneurs (Monocrop): (Monocrop):
MSMEs, e.g., Programme (from RM5 RM440 RM530
chocolate million in 2020
entrepreneur, ▶ Chocolate to RM12.5 million ▶ Net Income ▶ Net Income
integrated Entrepreneur in 2025) (Integration): (Integration):
cocoa and agro- Development RM1,520 RM1,820
tourism clusters, and Cocoa
nurseries by Promotion ▶ Gross Income ▶ Gross Income
adopting the Programme
“Farm to Table” (Monocrop): (Monocrop):
model
RM710 RM800

▶ Gross Income ▶ Gross Income

(Integration): (Integration):

RM1,790 RM2,100

13. Total Income 13. Total Income
of MSMEs/ of MSMEs/
Entreprneurs: Entrepre-
RM12.5 million neurs: RM12.5
million
14. Contribution
of 14. Contribution
Agricommo- of
dity-based Agricommo-
MSMEs to dity -based
Agricommo- MSMEs to
dity -based Agricommo-
output dity -based
(RM):RM 12.5 output
Million (RM):RM 25
Million
15. Percentage of
Bumiputera 15. Percentage of
MSMEs in Bumiputera
Midstream & MSMEs in
Downstream Midstream &
segments Downstream
– especially segments
“Next Gen” – especially
Bumiputera “Next Gen”
Entreprneurs: Bumiputera
90% Entreprneurs:
80%

64 National Agricommodity Policy 2021-2030 (DAKN2030)

COCOA
ENABLERS

Enabler 1. Investment Facilitation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MCB
▶ Provide end-to-
end investment ▶ Plantation Sector ▶ 3 Cocoa Plantations MCB
facilitation support Promotion Programme developed (OR 800 MCB
to the private sector - 1,000 ha planted
e.g., identifying and ▶ Development Funds area cultivated by
securing suitable land from EPU, MOSTI’S plantations)
for cocoa plantations Funds, KPM Funds
and providing access and International ▶ RM 145 million in
to quality planting collaboration Funds funding raised
materials and know-
how ▶ Plantation Sector ▶ 3 joint venture
Promotion Programme collaborations achieved
▶ Encourage creative
funding channels,
including to provide
access to bridging
funds

▶ Facilitate joint ventures
between downstream
players or end-users/
buyers and mid-sized
plantations

Enabler 2. Improving Market Access

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MCB
▶ Provide funds to
excellent chocolate- ▶ Strengthening ▶ 5 recognitions/
makers to participate and Sustaining the awards for cocoa
in international Cocoa Cluster Chain stakeholders (e.g.
competitions Programme farmers, chocolatiers,
entrepreneurs or
▶ Cocoa Production others) from national
Stimulus Programme and international
competitions for 5 years
(2021 – 2025)

Action Plan 65

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
▶ Sustain existing 2021-2025 2021-2025 IKL/MCB

markets and penetrate ▶ Chocolate Entrepreneur ▶ Increase market IKL/MCB
new markets Development and share of cocoa and
through international Cocoa Promotion cocoa products in the
promotions and trade Programme following regions:
missions
▶ Chocolate Entrepreneur – Asia and Oceania (5.5%
▶ Address trade barriers Development and annual increase)
and related issues faced Cocoa Promotion
by the industry using a Programme – Middle East (12% annual
whole of government increase)
approach
– Africa (11.4% annual
increase)

– Eastern Europe (13.3%
annual increase)

▶ 2 new market
destinations annually
(from 113 countries in
2020 to 123 countries in
2025)

Enabler 3. Institutional Reform of the MCB

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MCB
▶ Transform the seven
R&D centres under ▶ Research Centre ▶ 100 industry/academia/ MCB
the Malaysian Cocoa as Cocoa Centre of institution (or 5,000
Board into Centres of Excellence Programme individuals) received
Excellence recognised knowledge transfer
for specific research ▶ Subject Matter Expert within 5 years (2021 –
areas (SME) Development 2025)
Programme
▶ Prioritise talent ▶ 25 consultancy and
development for MCB services (recognition)
officers, as part of provided within 5 years
succession planning (2021 – 2025) or RM 0.5
and human capital million in consultancy &
development services fees

▶ 4 subject matter
experts (SME) to be
developed by the end
of 2025 depending on
budget availability.

66 National Agricommodity Policy 2021-2030 (DAKN2030)

PEPPER
Fostering Growth
Of The Pepper
Industry

68 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

15 13

Indicators Strategies
& Targets

15

SUSTAINABILITY 2 4 INCLUSIVENESS
Ensure sustainability of Forging partnerships
PRODUCTIVITY MARKET DEVELOPMENT
the pepper industry Enhance productivity Expand into specialised between pepper
through high yields through technology smallholders and
products and new industry players
and quality adoption market segment S12. Implement dedicated
S1. Focus on quality S4. Encourage technology S10. Enhance trade programmes to
facilitation to penetrate develop Pepper
pepper production – adoption to improve into new market and Agripreneurs
quality compliance vine productivity expanding existing S13. Facilitate partnerships
with Maximum Residue S5. Strengthen advisory markets between pepper
Level (MRL) aligned and extension services S11. Continuous marketing producers and industry
with Codex to smallholdings for and promotion of high players
(International food adoption of Good valued pepper and • Increase yield per
standard) to comply Agricultural Practices pepper-based
with requirements of (GAP) products, including vine/hectare
buyer and codex S6. Establish collaborations exploring synergies - Introduce good
standard of respective with existing training with other spices
country institutes by engaging planting and
S2. Foster better farming with social enterprises post-harvest
practices with more to provide training and practices
extension support extension services to - Integrated
services to smallholders smallholders extension
S3. Create a more programmes,
conducive business increase coverage to
and farming all producing areas
environment to attract and effective
the private sector and transfer of
youth to engage in technology to
pepper cultivation – pepper
especially with modern smallholders
farming practices and - Establish and
emphasis on develop Pepper
sustainability Agripreneurs
Programme to
3 encourage greater
participation of
MSMEs and small
industry players into
the pepper-based
downstream
activities

VALUE-CREATION
Accelerate the shift to downstream activities
S7. Advance small business growth in the downstream segment
S8. Intensify R&D to explore potential use of pepper and pepper extracts beyond the food sector
S9. Increase local consumption of pepper
• Promoting the usage and benefits of the pepper and pepper-based products among
entrepreneurs and end users

Action Plan 69

T1. SUSTAINABILITY

Ensure sustainability of the pepper
industry through high yields and quality

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
▶ Reduction in
S1. ▶ Collaboration numbers of MPB 1. Tonnes of 1. Tonnes of
Focus on with the consignment pepper pepper
quality pepper Ministry of return due to graded by graded by
production – Health, Malaysia MRLs the Malaysian the Malaysian
quality (MOH) on the ▶ 2,100 grade Pepper Pepper
compliance food for export certif icates Board: 15,000 Board: 18,000
with Maximum requirements issued by 2030 tonnes tonnes
Residue Level such as MRLs
(MRL) aligned Testing ▶ Training 2. Number 2. Number
with Codex conducted of grade of grade
(International ▶ To identify certif icates certif icates
food standard) the MRLs ▶ Implementation issued: 900 issued: 1,200
to comply with requirements of four
requirements for pepper innovative MPB
of buyer and imposed by farming
codex standard the consuming practices, i.e.
of respective countries intercropping
country system,
▶ To include alternative
S2. the MRLs in support pole,
Foster better the extension quality planting
farming activities materials, etc
practices with organize for
more extension the pepper
support services smallholders
to smallholders
▶ Training
programme
for pepper
smallholders
in the pepper
production
technology and
post-harvest
practices

▶ Training
programme for
extension staffs

▶ Innovation and
Best Practices
Programme on
Pepper Planting

70 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
MPB
S3. ▶ Innovation and ▶ Implementation
Best Practices of one IOT in
Create a more Programme on pepper planting
conducive Pepper Planting
business
and farming ▶ Youth Pepper
environment Planting
to attract the Programme
private sector
and youth ▶ Programme:
to engage Empowering
in pepper Mid-Scale and
cultivation – Innovative
especially with Pepper
modern farming Smallholders
practices and
emphasis on
sustainability

Action Plan 71

T2. PRODUCTIVITY

Enhance productivity through
technology adoption

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
MPB
S4. ▶ Yield verification ▶ Conduct one 3. Yield: 6.4 3. Yield: 6.6
Encourage survey 3-year survey on MPB
technology yield verification tonnes per ha tonnes per ha
adoption to ▶ Integrated Pest
improve vine and Disease ▶ Introduction 4. Labour 4. Labour
productivity Management of one intensity – intensity –
(IPDM) Integrated Pest Land: Labour Land: Labour
S5. Programme Management ratio (ha: ratio (ha:
Strengthen for pepper (IPM) system in worker): 1: 2 worker): 1: 2
advisory and cultivation pepper planting
extension 5. Total 5. Total
services to ▶ Pepper Smart ▶ Implementation
smallholdings Farming of one smart production: production:
for adoption Programme farming
of Good technologies in 43,500 tonnes 53,000 tonnes
Agricultural ▶ R&D on pepper pepper planting
Practices (GAP) productivity 6. Transfer/ 6. Transfer/
S6. improvement ▶ 100 trainings licensing and licensing and
Establish conducted commerciali- commerciali-
collaborations ▶ Training and sation rate of sation rate of
with existing refresher course R&D projects: R&D projects:
training for extension 13% 15%
institutes by staffs
engaging
with social ▶ Train the
enterprises to trainers
provide training programme
and extension
services to ▶ Collaboration ▶ 1 collaboration MPB
smallholders with other
government
departments,
agencies and
private sector

72 National Agricommodity Policy 2021-2030 (DAKN2030)

T3. VALUE-CREATION

Accelerate the shift to
downstream activities

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S7. ▶ Programme: ▶ 10 marketing MPB 7. Sectoral GDP 7. Sectoral GDP
Pepper pepper products Contribution Contribution
Advance small Agripreneurship and pepper- (RM million): (RM million):
business based products N/A N/A
growth in the ▶ Pepper MSMEs entrepreneurs
downstream Development ▶ Upstream ▶ Upstream
segment programme ▶ 10 pepper GDP: RM 802 GDP: RM 1,077
products Million Million

▶ 10 pepper-based ▶ Downstream ▶ Downstream
products
GDP: RM N/A GDP: RM N/A

S8. ▶ R&D Project on ▶ Total MSMEs MPB 8. Volume 8. Volume
Pepper-Based sales turnover increase increase
Intensify R&D to Products in local in local
explore potential ▶ Research and consumption: consumption:
use of pepper development of: 11,550 tonnes 11,650 tonnes
and pepper
extracts beyond – Food products; 9. Utilisation 9. Utilisation
the food sector rate (Ratio of rate (Ratio of
– Nutraceutical Production: Production:
products; Domestic Domestic
Utilisation): Utilisation):
▶ Personal care
products & 1: 0.26 1: 0.22
Cosmetic
products

S9. ▶ Promotion ▶ Growth of MPB
of pepper domestic
Increase local consumption pepper
consumption of and usage at consumption
pepper exhibitions,
expositions and ▶ Domestic
▶ Promoting seminars related consumption
the usage and to domestic and of increase to
benefits of the international 11,650 tonnes by
pepper and food and 2030
pepper-based beverage held
products in the country ▶ 2 Trade
among Missions/year
entrepreneurs ▶ R&D Project on
and end users Pepper-Based ▶ 3 Exhibitions
Products (International),12
Exhibitions
▶ R&D (Local)/year
Programmes on
food and non- ▶ 6 food and
food products 4 non-food
both by MPB products
and private developed
sectors

Action Plan 73

T4. MARKET DEVELOPMENT

Expand into specialised products
and new market segment

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
MPB
S10. ▶ Trade missions ▶ 2 Promotional 10. Total Exports: 10. Total Exports:
and visits to Visits to 13,035 tonnes 15,710 tonnes
Enhance trade pepper/spice Embassies per (RM144.5 (RM216.8
facilitation to importers year million) million)
penetrate into
new market ▶ International ▶ 4 existing 11. Balance of 11. Balance
and expanding exhibitions and markets Trade: RM112.1 of Trade:
existing markets expositions million RM193.4
to enhance – Far East: Japan, million
market visibility/ China, South
presence or Korea, Taiwan
dominance
– Europe: Sweden,
▶ Participation in Germany, Spain,
International France, Italy, UK
Conferences/
Forum ▶ 2 new markets
in the Middle
East; e.g., UAE

▶ Increase of total
of sales and
percentage to
main markets
such as Japan,
China and
Taiwan

– Japan (increase
from 31% to 38%)

– China (increase
from 15% to
20%)

– Taiwan
(decrease from
12% to 10%)

▶ Amount
of pepper
exported to
Europe MT

74 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
MPB
S11. ▶ Product re- ▶ 4 International
branding Pepper
Continuous Community
marketing and ▶ Market Meetings/year
promotion of promotion and
high valued retargeting ▶ 1 International
pepper and programmes Spice
pepper-based Conferences
products, ▶ Participation
including in overseas ▶ 1 America
exploring promotion and Spice Trade
synergies with exhibitions Association
other spices (ASTA)

▶ Engagement
with Food
Manufacturers
(4 Visits/Year)

▶ 2 value-added
pepper and
pepper-based
products

▶ 2 niche markets
for value-added
pepper and
pepper-based
products

Action Plan 75

T5. INCLUSIVENESS

Forging partnerships between pepper
smallholders and industry players

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S12. ▶ Establishment ▶ Number MPB 12. Smallholders 1. Smallholders
of pepper of Pepper Income (RM) Income (RM)
Implement farmers’ co- Agripreneurs - Average - Average
dedicated operatives income per income per
programmes to or any ▶ 2 pepper month per month per
develop Pepper organisation/ smallholders’ smallholding smallholding
Agripreneurs body co-operatives
▶ Net income: ▶ Net income:
S13. ▶ R&D on yield ▶ Yield per vine/
improvement hectare: 3.2kg RM890 RM1,280
Facilitate (6,400 tonnes in
partnerships ▶ Pepper 2025) ▶ Gross Income: ▶ Gross Income:
between pepper smallholders
producers and training ▶ Good planting RM1,310 RM1,730
industry players programme and post-
harvest 13. Number 2. Number
▶ Increase yield ▶ Transfer of practices of pepper of pepper
per vine/ technology adopted entrepre- entrepre-
hectare on pepper neurs neurs
planting/ ▶ Number (Usahawan (Usahawan
– Introduce production to of pepper Lada) Lada)
good planting smallholders entrepreneurs established: established:
and post- 50 50
harvest ▶ Value addition ▶ Number of
practices of pepper at the smallholders 14. Contribution 3. Contribution
farm level trained: 4,000 of of
– Integrated (2021-2025) Agricommo- Agricommo-
extension ▶ Programme: dity-based dity-based
programmes, Implementation MSMEs to MSMEs to
increase of Pepper Agricommo- Agricommo-
coverage to Agripreneurs dity-based dity-based
all producing programmes output (RM output (RM
areas and such as 24 Million) 25 Million)
effective the Pepper
transfer of Agripreneurship 15. Percentage of 4. Percentage of
technology and MSMEs Bumiputera Bumiputera
to pepper Programme MSMEs in MSMEs in
smallholders Midstream & Midstream &
▶ A dedicated Downstream Downstream
– Establish programme segments segments
and develop for pepper – especially – especially
Pepper smallholders “Next Gen” “Next Gen”
Agripreneurs to encourage Bumiputera Bumiputera
Programme production Entrepre- Entrepre-
to encourage of premium neurs: 30% neurs: 40%
greater quality pepper
participation at farm level
of MSMEs and at designated
small industry suitable areas
players into
the pepper-
based
downstream
activities

76 National Agricommodity Policy 2021-2030 (DAKN2030)

PEPPER
ENABLERS

Enabler 1. Investment and Market Facilitation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MPB
▶ Create a conducive
business environment ▶ Advice or assistance ▶ Programme: Pepper MPB
and funding facilities given to the Agripreneurship MPB, MARDI
to forge partnerships industry players and
between industry entrepreneurs ▶ MSMEs Training
players and smaller Programmes (training
local entrepreneurs ▶ 10 entrepreneurs syllabus to include
receive machine funding facilities)
▶ Establish special incentive to produce
funding assistance by quality downstream ▶ Facilitation
State Governments pepper products at a Programmes to
to support small local cost of RM20,000 per identify entry points
entrepreneurs recipient which is 50 to connect small local
people by 2025 entrepreneurs eligible
▶ Encourage R&D&C for available assistance
of non-food pepper ▶ Availability of loan
products through facilities or assistance ▶ R&D Project on Pepper-
incentives for research by State Governments Based Products
institutions and higher or agencies to small
learning institutions in local entrepreneurs ▶ Collaboration between
collaboration with the MPB with public,
private sectors ▶ Collaborations with one private universities,
local university and one and colleges on the
government sector. development of the
pepper R&D

Enabler 2. Institutional Reform of the MPB

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MPB
▶ Improve extension and
advisory services of ▶ 100 trainings conducted ▶ Training for pepper
the MPB and nurture to pepper smallholders smallholders
competent manpower and MPB extension
for better farm staffs ▶ Training for extension
management staffs

▶ Train the Trainers
Programme

Action Plan 77

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MPB
▶ Nurture researchers
and experts to develop ▶ Adoption of multi- ▶ Projects on Research MPB, MARDI
high yielding and science research, and Development of
pest/disease resistant in particularly for Pepper Based Product:
planting materials food technology,
biotechnology, – R&D in food technology;
▶ Strengthen R&D&C chemistry and
to develop new biochemistry in – R&D in nutraceutical;
products and increase creating and searching
commercialisation for new application – R&D in cosmetic;
of pepper extracts
required by the – R&D in personal care
consumers. product;

– R&D in wild pepper; and

– R&D in downstream
machineries

78 National Agricommodity Policy 2021-2030 (DAKN2030)

PLANT-BASED
FIBRES
Revitalising The
Plant-Based Fibres
Industry

80 National Agricommodity Policy 2021-2030 (DAKN2030)

Way Forward 2021-2030

17 15

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Promoting Expand productivity Expand markets by Increasing Bumiputera
improvements across all
sustainability across the leveraging the global participation in the
kenaf value chain segments supply chain kenaf industry
S5. Develop and
S1. Complete value chain S12. Expand industry-led S14. Enhance entrepreneur
development by implement suitable strategic partnerships development via an
creating good planting methods and to increase market infant industry
coordination from Good Agricultural access with buyers as programme for
upstream to Practices (GAP) to well as expanding into Bumiputera and
downstream achieve high level of new markets MSMEs
productivity in kenaf
S2. Attract private sector output S13. Target foreign-local S15. Develop Smallholder
investment by S6. Implement collaboration Cooperatives to achieve
providing incentive and outcome-based economies of scale
support to industry monitoring through mechanisation
players. S7. Increase operational and other initiatives
efficiency including the
S3. Implement use of machinery for
certification of kenaf planting, harvesting
products and processing kenaf
S8. Establish industry
S4. Zone specific areas for anchors
kenaf production (land
consolidation for
cluster farm)

3

VALUE-CREATION
Accelerating the shift to higher value-added activities
S9. Increase R&D and adoption of technology (IoT, IR 4.0, data analytics) in planting
management, downstream processing, and marketing (digital marketing and
e-commerce)
S10. Form strategic partnerships to create new kenaf/fibre based products especially
high value-added products.
S11. Conduct market research and a techno-economic study to find the best commercial
uses for kenaf-based fibres.

Action Plan 81

T1. SUSTAINABILITY

Promoting sustainability across
the kenaf value chain

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
NKTB/KTK
S1. ▶ Implement ▶ Establishment 1. Kenaf planted 1. Kenaf planted
Programme : of kenaf value ECER, NCER
Complete Transformation chain for and MIDA area: area:
value chain of Kenaf smallholders,
development by Production cluster farms 6,000 ha 10,000 ha
creating good Model and commercial
coordination plantations *2 cycles per *2 cycles per
from upstream under contract
to downstream farming year, 3,000 ha year, 5,000 ha
program.
per cycle per cycle
– Smallholders
S2. ▶ Implement (NKTB buyback
Flagship scheme &
Attract Programme 9: Contract
private sector Establishment farming)
investment of Kenaf and
by providing Plant-based – Cluster farm
incentive and Fibre Valley & commercial
support to plantation
industry players. (contract
farming with
midstream
players – Kenaf
Industrialised
Building
System (IBS),
Kenaf Non-
Woven, Kenaf
Biodegradable
products, Kenaf
Animal Bedding
& Kenaf
Particleboard.

▶ Tax incentive
scheme (ECER,
NCER and
MIDA) for new
private ventures
(implemented)

▶ Introduce
captive market
for government
procurement
by creating
and promoting
government
procurement
based on kenaf
derived product

82 National Agricommodity Policy 2021-2030 (DAKN2030)

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
NKTB, SIRIM,
S3. ▶ Implement – 30,000-unit KeTSA
Implement Malaysian low cost
certification of Sustainable industrialize MAFI, KPLB,
kenaf products Kenaf building system KTK, State
Certif ication (IBS) house in 13 Govern-
S4. (MSKC) Scheme states ments
Zone specific
areas for kenaf ▶ Implement – 14,000 tonnes
production (land Malaysian Kenaf non-woven for
consolidation for Carbon Credit insulation and
cluster farm) (MKCC) Scheme mattress for
government
▶ Encourage institutions and
integration agencies
with other
commodity – 1,000 tonnes
crops biodegradable
(BDU)
▶ Promote packaging
rotation of cash for municipal,
crops with hospital and
single paddy learning
crop institution)

▶ Establish ▶ Commercialise
dedicated at least three
cluster products listed
farms with below:
cooperation of
states GLCs – Product
certif ication

– Kenaf
Industrialised
Building System
(IBS),

– Kenaf Non-
Woven,

– Kenaf
Biodegradable
products

– Kenaf
Particleboard

– Establishment
of kenaf carbon
credit

▶ Collaboration/
MoU with land
owners, such
as plantation
companies,
government
agencies
and State
Governments

– 2,000 hectares
smallholders

– 2,500 hectares
cluster farms

– 1,500 hectares
commercial
plantations

Action Plan 83

T2. PRODUCTIVITY

Expand productivity improvements
across all segments

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
▶ At least 1 new NKTB and
S5. ▶ Implement kenaf variety will Malaysian 1. Yield: 2. Yield:
breeding be produced
Develop and Programme for (high yielding - Nuclear ▶ Dried Stem: ▶ Dried Stem:
implement new seed variety with at least 10 Agency 10 tonnes/ha
suitable planting metric tonnes 13 tonnes/ha
methods ▶ Develop and of kenaf dried NKTB and ▶ Seed
and Good promote Kenaf stem /ha) MYSA Production: ▶ Seed
Agricultural Geographical ▶ 10 cooperatives 0.5 tonnes/ha Production:
Practices (GAP) Information will be set up to NKTB 0.8 tonnes/ha
to achieve System (GIS) improve farm 2. Labour
high level of management NKTB Intensity (ha: 3. Labour
productivity in ▶ Implement ▶ 40 % of farmers worker) – 1:1 Intensity (ha:
kenaf output mechanisation will be using worker) – 1:1
programmes mobile apps 3. Level of
S6. for planting, reporting automation 4. Level of
harvesting and for planting automation
Implement processing ▶ 80% and for planting
outcome-based mechanisation processing and
monitoring ▶ Implement adoption rate kenaf (% processing
Programme : of total kenaf (%
S7. Transformation ▶ 50% raw industry): of total
of Kenaf materials will industry):
Increase Production be produced ▶ Planting: 85%
operational Model through ▶ Planting: 90%
eff iciency Contract ▶ Processing:
including ▶ Promote Farming system. 80% ▶ Processing:
the use of organised 90%
machinery smallholders to 4. Transfer/
for planting, cluster farming licensing and 5. Transfer/
harvesting and and establish commerciali- licensing and
processing commercial sation rate of commerciali-
kenaf plantations. R&D projects: sation rate of
13% R&D projects:
S8. 15%

Establish
industry anchors

84 National Agricommodity Policy 2021-2030 (DAKN2030)

T3. VALUE-CREATION

Accelerating the shift to
higher value-added activities

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
NKTB, MITI,
S9. ▶ Implement ▶ at least 30% of MIDA, ECER, 6. Total output 6. Total output
Programme: finish product (ratio of
Increase R&D Establishment is hybrid/ NCIA upstream to (ratio of
and adoption of Kenaf and integrated with downstream): upstream to
of technology Plant-based other natural MOSTI/ 60 : 40 downstream):
(IoT, IR 4.0, Fibre Valley fiber and two Nuclear 50 :50
data analytics) successful Malaysia 7. Contribution
in planting product to GDP (RM 7. Contribution
management, integration 180 million) to GDP (RM
downstream projects 415 million)
processing, ▶ Upstream
and marketing ▶ Commerciali- GDP (RM 30 ▶ Upstream
(digital sation focused million) GDP (RM 65
marketing and on four Lead million)
e-commerce) sectors: ▶ Downstream
GDP (RM 150 ▶ Downstream
S10. – Kenaf million) GDP (RM 350
Industrialised million)
Form strategic Building System 8. Utilisation
partnerships (IBS) rate (Ratio of 8. Utilisation
to create new Production: rate (Ratio of
kenaf/f ibre – Kenaf Non- Domestic Production:
based products Woven Utilisation) Domestic
especially high Utilisation)
value-added – Kenaf 1 : 0.90
products. Biodegradable 1: 0.80
Products
S11.
– Kenaf
Conduct market Particleboard/
research and Absorbent &
a techno- Filler Industry
economic study
to find the best • Establish
commercial captive market
uses for kenaf- for four Lead
based fibres. sectors (Kenaf
Industrialised
Building
System (IBS),
Kenaf Non-
Woven, Kenaf
Biodegradable
products, Kenaf
Particleboard)

Action Plan 85

T4. MARKET DEVELOPMENT

Expand markets by leveraging
the global supply chain

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030
KTK, NKTB,
S12. ▶ Organise Kenaf ▶ Collaboration MITI, MIDA, 9. Total export 9. Total export
& Allied Fibers with MATRADE of fibre of fibre
Expand Trade Forum manufacturing products: 30% products: 50%
industry- (KAFTF) 2025 industries of production of production
led strategic and exporter
partnerships to ▶ Increase to substitute 10. Total 10. Total
increase market promotion unsustainable Domestic Domestic
access with activity – raw materials Market Market
buyers as well as domestic & with kenaf of Kenaf of Kenaf
expanding into international green raw and Plant- and Plant-
new markets market materials based Fibre based Fibre
Products Products
▶ Implement ▶ Market (RM million): (RM million):
business penetration RM500 RM1,000
matching for green-
system with based products 11. Kenaf & Plant- 11. Kenaf & Plant-
business entity through three based Fibres based Fibres
and related core industries Balance of Balance of
government i.e Kenaf Trade (RM Trade (RM
agency to Biodegradable million) – will million) – will
encourage products, kenaf be prepared be prepared
the usage of non-woven
kenaf products/ and Kenaf 12. Ratio of 12. Ratio of
manufacturing Industrialized Upstream to Upstream to
Building System Downstream Downstream
▶ Organise Kenaf (IBS). Exports – Exports –
Technical and 50 : 50
technology ▶ Captive 40 : 60
forum (national market under
and state) government
-bilateral, etc. procurement
to promote
S13. kenaf and kenaf
products as a
Target biodegradable
foreign-local commodity
collaboration (BDU, non-
woven products
and Integrated
Building
System)

▶ 5 partnership
agreements
signed through
Public Private
Partnership
(PPP)

86 National Agricommodity Policy 2021-2030 (DAKN2030)

T5. INCLUSIVENESS

Increasing Bumiputera participation
in the kenaf industry

Programmes/ Measurable Lead/ Targets
Activities Outcomes Implementors
Strategies 2021-2025 2021-2025 2025 2030

S14. ▶ Implement ▶ Establishment NKTB, MTIB, 13. Smallholders’ 13. Smallholders’
Enhance Kenaf-preneur of Kenaf Bumi- CIDB, SIRIM income (RM) income (RM)
entrepreneur Programme preneur MSME –Average –Average
development under 4 Lead NKTB, SKM income per income per
via an infant – IBS contractor & sectors: month per month per
industry Installer smallholding: smallholding:
programme for – Kenaf RM2,200 RM3,100
Bumiputera and – Bedding and Industrialised
MSMEs mattress Building System 14. % smallholder 14. % smallholder
(IBS) farms vs total farms vs total
S15. – Biodegradable size of kenaf size of kenaf
Develop products. – Kenaf Non- farms: 33% farms: 20%
Smallholder Woven
Cooperatives – Kenaf ▶ 2,000 ha ▶ 2,000 ha
to achieve particleboard – Kenaf organised organised
economies of furniture Biodegradable smallholders smallholders
scale through Products
mechanisation – Pet Bedding/ ▶ 2,500 ha ▶ 6,500 ha
and other litter – Kenaf cluster farm cluster farm
initiatives Particleboard/
▶ Implement Absorbent & ▶ 1,500 ha ▶ 1,500 ha
kenaf cluster Filler Industry commercial commercial
farm and in- plantations plantations
situ bioretting ▶ 10 cooperative
processing farming 15. Number of 15. Number of
programmes smallholder smallholder
cooperatives: cooperatives:
10 15

16. Contribution 16. Contribution
of of
Agricommo- Agricommo-
dity-based dity-based
MSMEs to MSMEs to
Agricommo- Agricommo-
dity-based dity-based
output (RM): output (RM):
RM22.5 RM 45.5
Million Million

17. Percentage of 17. Percentage of
Bumiputera Bumiputera
MSMEs in MSMEs in
Midstream & Midstream &
Downstream Downstream
segments segments
– especially – especially
“Next Gen” “Next Gen”
Bumiputera Bumiputera
Entrepre- Entrepre-
neurs: 80% neurs: 60%

Action Plan 87

PLANT-BASED FIBRES
ENABLERS

Enabler 1. Investment Facilitation

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 MoF, KTK, NKTB

▶ Provide infrastructure ▶ Provide financial ▶ Provide soft loan for NKTB, MPIC KTK, MOSTI,
and funding for the support new ventures – MIDA, MATRADE
private sector to expand
upstream production – Kenaf Development ▶ RM100 million NKTB
Fund (KDF) ▶ * 5 companies)

– Kenaf Matching Grants ▶ Establish technology
sharing platform
– Kenaf Crowdfunding
▶ 5 long term
▶ Facilitate the sharing ▶ Organise kenaf contract farming &
of latest research and technology update manufacturing signed
industry knowledge on forum (technology through captive market
kenaf with the private matching) initiative
sector
▶ Organise Kenaf online
tech forum

▶ Facilitate off-take ▶ Implement Kenaf
agreements to secure Forward Market
a market for kenaf’s Scheme for green
future output product.

Enabler 2. Human Capital Management and
Development

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025 NKTB, MTIB, SIRIM, MAFI

▶ Prioritise development ▶ Implement Kenaf ▶ Five Subject Matter
of skilled human capital Subject Matter Experts Experts trained
to manage all segments Programme: in Upstream,
of kenaf operations in midstream and
Malaysia 1. Kenaf Agronomist downstream sectors
across the country
– Fertiliser – kenaf strategic
planning, kenaf
– Soil processing, breeding,
mechanisation and
– Breeding product technologies

– Pest and Disease

2. Kenaf Processing expert

– Farm Mechanisation

– Harvesting and Post
Harvesting

88 National Agricommodity Policy 2021-2030 (DAKN2030)

Strategies Programmes/Activities Measurable Outcomes Lead/Implementors
2021-2025 2021-2025

3. Kenaf Product
Technologies

– Kenaf Industrialised
Building System (IBS)

– Kenaf Non-Woven

– Biodegradable
Products

– Kenaf Particleboard/
Absorbent & Filler
Industry

Action Plan 89

90 National Agricommodity Policy 2021-2030 (DAKN2030)

BIOMASS
Scaling Up
The Circular
Economy Through
Agricommodity
Biomass

92 National Agricommodity Policy 2021-2030 (DAKN2030)

Preliminary
Way Forward 2021-2030

10 15

Indicators Strategies
& Targets

1 2 4 5

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT INCLUSIVENESS
Promote the circular Develop an industry Position Malaysia as a Create
economy concept in the Leading Agricomodity
Agricomodity sector ecosystem that Biomass Hub income-generation
• Enhance the utilisation optimises costs, opportunities for
efficiency and • Encourage local Smallholders,
of biomass in current adoption of
Agricomodity value technology Agricomodity biomass Bumiputera and MSMEs
chains • Invest in R&D&C to solutions • Develop the capacity of
• Develop certification
standard for the improve efficiency and • Ensure MSMEs to utilise,
agricomodity biomass tecnology adoption export-readimess by manufacture and
industry • Fully utilise and complying with certify higher-value
develop infrastructure technical specifications biomass products
and logistics networks and global • Encourage smallholder
sustainability standards participation in the
circular economy
• Increase export • Promote entry of
promotion of entrepreneurs into
processed products ancillary services

• Capture opportunities
across the circular
economy

3

VALUE-CREATION
Facilitate financially viable ventures into high-value biomass industries
• Set up collection centres and establish transparent data
• Devise fair pricing mechanisms to unlock consistent supply of feedstock
• Mainstream the use of OPT as timber raw material
• Incentivise industry to invest in the production of high-value products

 The Government will streamline delivery, i.e., to implement measures needed to further
strengthen the Agricommodity biomass industry ecosystem. MPIC will coordinate the
development of Agricommodity biomass at the Ministry-level while MPOB and MTIB will
continue to focus on R&D&C and driving implementation in partnership with industry players.

 The National Biomass Action Plan - a holistic stocktake and development plan for the industry,
will be formulated to maximise Agricommodity biomass utilisation and encourage expansion
into high-value bioproducts.

Programmes/Activities 2021-2025 Measurable Outcomes 2021-2025 Lead/Implementors
BBA, MPOB, MTIB
▶ Ten indicators, industry baseline data ▶ Completion of the National Biomass
and fifteen preliminary strategies Action Plan through comprehensive
proposed in the DAKN2030 policy stakeholder engagement by 2022
document will be validated and
refined as part of the National
Biomass Action Plan. Targets to 2030
will also be defined then.

94 National Agricommodity Policy 2021-2030 (DAKN2030)

Action Plan 95

BIODIESEL

Promoting
Biofuels As A
Source Of Clean
Energy - Biodiesel

96 National Agricommodity Policy 2021-2030 (DAKN2030)

Biodiesel
Way Forward 2021-2030

10 7

Indicators Strategies
& Targets

1 2 4

SUSTAINABILITY PRODUCTIVITY MARKET DEVELOPMENT
Encourage certification Increase biodiesel Protect existing

and build consumer utilisation markets and explore
support S3. Increase biodiesel plant new opportunities

S1. Encourage the use of capacity utilisation S6. Address existing
certified sustainable market barriers that
feedstock and limit palm biodiesel
certification of output exports

S2. Build consumer S7. Explore and break into
support for biodiesel as new export markets
a source of clean
energy through
fact-based
communication

3

VALUE-CREATION
Drive development and testing of new applications
S4. Maritime: Drive development and testing of maritime

biodiesels – tests with auxiliary engine OEMs; field
trials on board ships
S5. Aviation: Develop and pilot solutions for biojet fuel